SS Mundra, Former Deputy Governor of RBI and Ashvin Parekh, Managing Partner at Ashvin Parekh Advisory Services discussed with Latha Venkatesh if the BBB's complaints are justified and if the bureau can be used as a tool to improve governance.
Public sector banks (PSB) are at the cross roads, bogged down with over 15 percent of their book marked as stressed or outright bad loans. To add to this, a huge fraud at one of the banks, has also shaken confidence of both public as well as bankers. Therefore the question arising is, ‘is there a need to privatise banks’ or can we improve governance even under the current structure.
Last week Vinod Rai Chairman of the Banks Board Bureau (BBB) in a 50 page letter to the government argued that it is possible to improve governance and that his bureau had put forth plans on board composition, compensation of bankers, code of conduct, and business strategy, but the department of financials services has not even responded.
SS Mundra, Former Deputy Governor of RBI and Ashvin Parekh, Managing Partner at Ashvin Parekh Advisory Services discussed with Latha Venkatesh if the BBB's complaints are justified and if the bureau can be used as a tool to improve governance.
